Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Prices Test New Lows As Traders Wait For Trump’s Decision On Iran

WTI oil tested new lows as President Trump indicated that he could make a decision on the potential deal with Iran soon.

In his post, Trump said that he would be meeting in the Situation Room to make a final determination. Several hours have passed since Trump published the post, and there were no official announcements.

As usual, Iranian media denied Trump’s words, reporting that the sides did not discuss the fate of Iran’s nuclear program and focused on other issues. The reports from the U.S. and Iran usually contradict each other, so traders will have to wait for the official deal announcement to learn the details. In such situations, the ultimate deal usually consists of a mix of points that have been previously presented by the sides of negotiations.

Overall, traders are optimistic that the deal would be reached. Iran has suffered serious damage, while the U.S. naval blockade puts significant pressure on the country’s weak economy. Meanwhile, high oil prices have hurt consumer sentiment in the U.S. and are starting to deal damage to global economy, so the U.S. also wants to get a deal. The key question is whether U.S. and Iran are ready to compromise to make negotiations work.

From the technical point of view, WTI oil settled below the $90.00 level and is trying to settle below $87.00. In case this attempt is successful, WTI oil will head towards the nearest support level, which is located in the $84.00 – $84.50 range.